Why did the IRS deny the political rival’s request to see the Carpenters tax return?
Why did the IRS deny the political rival’s request to see the Carpenters tax return?
Chapter8: Taxation Of Individuals
Section: Chapter Questions
Problem 67TA
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Why did the IRS deny the political rival’s request to see the Carpenters tax return?
Transcribed Image Text:Nancy and Jeff Carpenter received their package of tax forms from the IRS. Because the
Carpenters had recently moved, Jeff went to the library to pick up the appropriate form to
claim moving expenses. They carefully completed the forms and mailed them to the IRS
on April 5.
Jeff Carpenter was running for a seat in his state's legislature. His political rival hoped to
prove that Nancy had illegal sources of income. He called the IRS and asked to have a copy
of the Carpenters' return sent to him. His request was refused.
Because of unrelated circumstances and not because of Jeff's rival's request, IRS officials
checked the arithmetic on the Carpenters' forms. Their return was one of the less than one
percent that was selected for further examination.
An IRS representative contacted Nancy and Jeff, asking them to meet with him and to bring
verification of their moving expenses. At the meeting, the IRS representative ruled that
many of their expenses, including the temporary storage of their furniture, were not tax
deductible. He asked the Carpenters to sign an agreement to pay the additional tax.
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